A defence industrial approach for the developing world - Ivor Ichikowitz, executive chairman and founder of the paramount group
[Johannesburg, 12 May 2010] -
The global defence and security market is entering a period of unprecedented change. Force modernisation to meet 21st Century requirements will necessitate a step change in delivery and acquisition of equipment, training, logistics and support. The opportunities this presents will be driven by the developing world.If developing countries are to build forces fit for this century, capability providers will need to respond by delivering solutions tailored to unique national requirements for domestic security, peacekeeping, force protection and agile Special Forces. This will require a new kind of relationship between governments and industry, beyond 'one size fits all' off-the-shelf platforms. It offers an opportunity to create a new kind of defence industry; rooted in developing countries and responsive to their requirements. Indeed, this shift is already taking place. In India and Azerbaijan, Paramount Group is partnering and stimulating new growth directly with domestic suppliers to deliver specialist equipment shaped by the specific needs of those countries. This provides additional economic benefits as defence industrial policy supports development through jobs, innovation and export potential.The European defence industry will continue to contract as spending is squeezed while in the US, industry is geared towards the high end requirements of the Department of Defense. In most cases the solutions offered are expensive, include capabilities beyond what is really required, are difficult to integrate into existing force structures and often come with caveats about how they can be operated, maintained and up-graded.
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